Department for Business, Energy and Industrial Strategy

Subsidy Control Bill and Government response to the consultation on Subsidy Control

Lord Callanan: My Right Honourable friend the Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng) has today made the following statement: Today the Government has introduced the Subsidy Control Bill and published the Government’s response to the consultation, “Subsidy control: designing a new approach for the UK”.The UK government has seized the opportunity presented by our exit from the European Union to develop a new, bespoke regime for subsidy control within the UK. This new regime has been designed to reflect our strategic interests, strengthen our Union and help to drive economic growth and prosperity across the whole of the UK.The new regime will be flexible, agile, and tailored to support business growth and innovation, as well as help to maintain a competitive free market economy and protect competition and investment in the UK. Between 3 February and 31 March 2021, the Government held a public consultation on the UK’s future subsidy control proposals. The Government has used responses to the consultation to inform the design to provide a bespoke and dynamic framework, which will:- Empower local authorities, public bodies, and central and devolved governments to design subsidies that deliver strong benefits for the UK taxpayer.- Enable public authorities to deliver subsidies that are tailored and bespoke for local needs to support the UK’s economic recovery and deliver UK Government priorities such as levelling up, achieving net zero and increasing UK R&D investment.- Provide certainty and confidence to businesses investing in the UK, by protecting against subsidies that risk causing distortive or harmful economic impacts, including to the UK domestic market.- Contribute to meeting the UK’s international commitments on subsidy control, including its international commitments at the World Trade Organisation, in Free Trade Agreements and the Northern Ireland Protocol.The foundation of this new domestic subsidy control regime is a clear, proportionate, and transparent set of principles, underpinned by guidance, that will ensure public authorities fully understand their legal obligations and embed strong value for money and competition principles.The Government will create streamlined routes to demonstrate compliance for categories of subsidies at low risk of causing market distortions, that promote our strategic policy objectives and which the Government judges to be compliant with the principles of the regime. This will ensure that these authorities are able to deliver these subsidies with minimum bureaucracy and maximum certainty.In order to protect UK competition and investment and demonstrate where it is proportionate for public authorities to give greater scrutiny to their subsidies, we will create two specific categories of small number of subsidies that may undertake more extensive analysis to assess their compliance with the principles: Subsidies of Interest and Subsidies of Particular Interest. Criteria for these subsidies will be set out in secondary legislation in due course. We anticipate there will be a very small number of subsidies in each of these categories.The Bill also establishes an independent body which will be a UK Subsidy Advice Unit in the Competition and Markets Authority (CMA). The Subsidy Advice Unit will have a role in monitoring and overseeing how the regime is working as a whole, as well as conducting a mandatory, non-binding review on public authorities’ assessments for Subsidies of Interest and Subsidies of Particular Interest. Enforcement will be through the Competition Appeal Tribunal who will hear judicial reviews against subsidy decisions.The Government has designed a subsidy control scheme that promotes a dynamic market economy throughout the UK and that minimises distortions within the UK. To ensure that this system works for all parts of the UK, the government has worked closely with the devolved administrations throughout this process, including meeting the statutory duty to share the consultation response document ahead of publication and consider devolved administrations’ representations.The measures in the Subsidy Control Bill strike the right balance between maximising our new-found flexibilities, having left the EU, and providing a consistent framework for all UK public authorities. The Bill will ensure that the UK maintains a competitive, free market economy – which is fundamental to our national prosperity – while protecting the interests of the British taxpayer.I will lay the Government Response to Subsidy Control consultation before Parliament. I will place copies of the Impact Assessment and the draft Statement of Policy in the libraries of both Houses.

Cabinet Office

EU relations: Withdrawal Agreement

Lord Frost: The Government has been consistently clear that there should be no barriers on the movement of meat products from Great Britain to Northern Ireland. In order to avoid any disruption to those movements, the Government proposed to the EU that it would be sensible to extend the grace period agreed at the Withdrawal Agreement Joint Committee in December, which would otherwise have expired on 1 July, on certain conditions.Following detailed discussions, the UK and EU have agreed to extend the grace period until 30 September. In line with that agreement, the United Kingdom has today set out a unilateral declaration, of which the EU has taken note, relating to the movement of meat products from Great Britain to Northern Ireland. This sets out the conditions under which meat products otherwise classed as prohibited and restricted goods will move from Great Britain to Northern Ireland. This agreement does not require the rest of the United Kingdom to align with any changes in EU agrifood rules during the grace period - there is no dynamic alignment.The extension ensures that Northern Ireland consumers will continue to be able to buy chilled meat products from Great Britain. This is a positive first step but agreement is still required on a permanent solution, and this further period provides time for those discussions to proceed. This is also only one of a very large number of problems with the way the Protocol is currently operating, for which solutions need to be found with the EU to ensure the Protocol delivers on its original aims: to protect the Belfast (Good Friday) Agreement, safeguard Northern Ireland’s place in the United Kingdom, and protect the EU’s single market for goods. Unilateral Declaration (pdf, 10.9KB)

Department of Health and Social Care

Covid-19 Update

Lord Bethell: My Rt Hon Friend the Secretary of State for Health and Social Care (Sajid Javid) has today made the following written ministerial statement:Today the Joint Committee on Vaccination and Immunisation (JCVI) has published interim advice on options for a COVID-19 booster vaccination programme for adults this Autumn.It should be noted that this is interim advice and the JCVI will consider additional scientific data as it becomes available over the next few months ahead of developing their final advice. This includes, but is not limited to, further data on the durability of protection from vaccines beyond six months, and clinical trial data on immune responses following a third vaccination.In summary, on the basis of current evidence and with the aim of reducing the occurrence of serious COVID-19 disease, the JCVI advises the following as the likely shape of the Autumn programme.Any potential booster programme should begin in September 2021, in order to maximise protection in those who are most vulnerable to serious COVID-19 ahead of the winter months. Influenza vaccines are also delivered in Autumn, and the JCVI considers that, where possible, a synergistic approach to the delivery of COVID-19 and influenza vaccination could support delivery and maximise uptake of both vaccines.Any potential COVID-19 booster programme should be offered in two stages.Stage 1. The following persons should be offered a third dose COVID-19 booster vaccine and the annual influenza vaccine, as soon as possible from September 2021:adults aged 16 years and over who are immunosuppressed;those living in residential care homes for older adults;all adults aged 70 years or over;adults aged 16 years and over who are considered clinically extremely vulnerable;frontline health and social care workers. Stage 2. The following persons should be offered a third dose COVID-19 booster vaccine as soon as practicable after Stage 1, with equal emphasis on deployment of the influenza vaccine where eligible:all adults aged 50 years and overadults aged 16 – 49 years who are in an influenza or COVID-19 at-risk group. (please refer to the Green Book for details of at-risk groups)adult household contacts of immunosuppressed individualsAs most younger adults will only receive their second COVID-19 vaccine dose in late summer, the benefits of booster vaccination in this group will be considered at a later time when more information is available. The initial objective for winter 2021/22 is for persons in Booster Stages 1 and 2 to receive their influenza and COVID-19 vaccines in good time.Apart from the current UK approved COVID-19 vaccines, the UK has placed orders for a range of other COVID-19 vaccines, some of which may become available for use in a booster programme. The JCVI will review the use of these vaccines once they have received UK regulatory approval. Vaccines designed specifically against variants of concern will not be available in time for booster revaccination this Autumn. The use of variant vaccines will be considered by the JCVI in due course.Additional scientific data will become available over the next few months which will require further consideration by the JCVI ahead of any final advice. These include:further data on the safety and effectiveness of COVID-19 vaccines used in the UK and internationally;clinical trial and real-world effectiveness data on the durability of protection beyond six months;clinical trial data on immune responses following a third vaccination (booster revaccination);clinical trial data on reactogenicity and immunogenicity following booster revaccination with the same or alternative COVID-19 vaccines;clinical trial data on other COVID-19 vaccines in development;the emergence of any new variants of concern in the UK or internationally;data on the duration of immunity following a primary course;a better understanding of the immune correlates of protection; anddata on the effects of on-going SARS-CoV-2 circulation in the population and its potential to confer long-term public health benefits.JCVI note early evidence supports the delivery of both Covid-19 and flu vaccines at the same time where appropriate.Subject to the JCVI’s final advice, we are developing detailed plans for a booster programme. NHS England and NHS Improvement will be asking all local systems to develop detailed plans to ensure they are ready to deliver a booster programme from the start of September in line with this advice, working closely with partners including local authorities and voluntary organisations to ensure equal access and maximise uptake of both COVID-19 and influenza vaccines.All four parts of the UK welcome this interim advice, which will help us ensure we are ready in our preparations for Autumn. We look forward to receiving the Committee’s final advice in due course.

Department for International Trade

Negotiations on the UK’s Future Trading Relationship with New Zealand: Update

Lord Grimstone of Boscobel: My Rt Hon Friend the Secretary of State for International Trade (Liz Truss MP) has today made the following statement.The fifth round of Free Trade Agreement Negotiations with New Zealand took place between 8-16 June 2021. New Zealand’s Trade and Export Growth Minister Damien O’Connor also visited the UK from 16-18 June for face-to-face talks. Both countries have agreed to accelerate negotiations to finalise the details of the deal with the aim of reaching agreement in principle.Both countries are committed to agreeing a high quality, comprehensive free trade agreement that supports jobs, broadens consumer choice, and provides more opportunities in key industries such as services, digital trade, and the green economy.Strong progress was made in agreeing key issues across the deal including provisionally closing a further four chapters:Government Procurement chapter, which improves Small Medium-sized Enterprises’ (SMEs’) access to procurement and the integrity of supply chains.Disputes Chapter, which establishes mechanisms to promote and enforce compliance with the agreement and ensures that state-to-state disputes are dealt with consistently, fairly and in a cost-effective, transparent, and timely manner. It gives businesses and stakeholders certainty that the obligations under this agreement will be upheld.Transparency chapter, which underscores the rule of law as the major cornerstone of good governance, outlining agreed expectations for the UK and New Zealand to be transparent, open, and accessible to UK businesses, with respect to this trade agreement and their respective regulatory environments.Trade and Gender Equality chapter, which recognises that women are underrepresented in international trade, and aims to support women exporters, business owners, and entrepreneurs to participate in global trade.Excellent progress was also made during Round 5 on the following chapters, which the UK and New Zealand agree now have a clear path to closure:Rules of OriginGoodsCross-Border Trade in ServicesCustomsDigitalTelecomsState Owned EnterprisesConsumer ProtectionGood Regulatory PracticeLabourDevelopmentAnti-CorruptionInitial & Final ProvisionsGeneral ExceptionsInstitutional ProvisionsIn previous rounds, chapters on SMEs, Competition, Remedies were provisionally closed.The Government has been clear that any future deal with New Zealand must work for UK consumers, producers, and companies. Throughout the process the UK will continue to engage stakeholders to ensure their views inform our approach to negotiations.Any deal the UK agrees will be fair and balanced and in the best interests of the whole of the country. We remain committed to upholding our high environmental, labour, food safety and animal welfare standards in the deal, as well as protecting the National Health Service (NHS).The UK and New Zealand both remain eager to make further progress, with the UK clear that momentum needs to be maintained across the whole agreement. Ahead of the next round, negotiating teams will share further proposals and discuss a range of issues.The next round of negotiations, Round 6, is scheduled to take place in July, with a series of intersessional discussions across the FTA planned for the next month.